Exercise 6 Cha kui plc is a medium-sized company producing a range of engineering products which it sells to wholesale distributors. Recently, its sales have begun to rise rapidly following a general recovery in the company as a whole. However, it is concerned about its liquidity position and is contemplating ways of improving its cash ow. Cha kui's accounts for the past two years are sunnnarized below. Income Statement for the year ended 31 December Sales Cost of sales Operating prot Interest Prot before tax Taxation {aer capital allowances) Prot after tax Dividends Retained prot Balance Sheet As at 31 December Non-current Assets (Net) Current Assets Inventory Trade Receivable Cash Current Liabilities Overdraft Trade Payables Other Payables 10% Loan Stock Net Assets Capital and Reserves Ordinary shares (50p) Income statement account 2013 (000) 1,400 1,600 1,500 1,500 500 2013 (000) 12,000 (2,000) 1000 [200! 4,800 5 1,0001 3,800 g 1,500! 2 300 P (000) 0000 4,500 (2,000) 12,000) 9,500 3,000 2014 (000) (000) 12000 2,200 2,600 100 4,900 200 2000 200 (2,400) (2,000} 12,500 3,000